tax-exempt

[taks-ig-zempt]

adjective

1. not subject or liable to taxation.

   tax-exempt imports.

2. providing income that is not taxable.

   tax-exempt municipal bonds.

noun

1. a tax-exempt security.

tax-exempt

adjective

1. (of an income or property) exempt from taxation

2. (of an asset) earning income that is not subject to taxation

Word History and Origins

Origin of tax-exempt¹

First recorded in 1920–25

Example Sentences

For more than 70 years, churches and other religious institutions in the United States were told to steer clear of “any political activity” or risk losing their tax-exempt status.

From Salon

On Monday, the IRS revoked a long-standing rule that stripped tax-exempt status from churches that endorse political candidates.

From Salon

Blue Shield denied the accusations but ultimately relinquished its tax-exempt status, even as it has continued to pursue an appeal of an order requiring it to pay more than $100 million in back taxes.

From Los Angeles Times

For example, the assemblyman introduced a bill that would've ended tax-exempt status for New York charities with ties to Israeli settlements that violate international human rights law.

From BBC

The new finance bill replaces the zero-rated tax provision on essential commodities with tax-exempt status.

From BBC